Light Microfinance, an Ahmedabad-based micro finance institution, has raised Rs 196 crore in a Series B funding round led by British International Investment, the UK’s development finance institution and impact investor.
All three of the company’s existing investors, Nordic Microfinance Initiative, Triple Jump BV, and Incofin IM, also participated in this round.
Light Founder and MD, Deepak Amin, said, “The investment is the result of Light’s commitment to robust risk management and to technology and innovation while delivering reliable finance towards inclusive growth.”
Geographical expansion
As per the official release, the funding will be utilised for geographical expansion into new states to diversify the company’s product lines and continued investments in technology and digital initiatives.
Manav Bansal, Managing Director and Head of India, British International Investment, said, “Our partnership with Light will ensure customers can access financial products that support income-generating activities and increase productivity while improving financial security and promoting sustainable economic growth within communities and across the country.”
Founded in 2009 by Deepak Amin (MD), Rakesh Kumar (CEO), and Aviral Saini (CFO), Light Microfinance is headquartered in Ahmedabad and has operations across Gujarat, Rajasthan, Madhya Pradesh, and Haryana.
Light Microfinance has been making significant investments in building its proprietary analytics platform, which has started yielding dividends for the company. The company has doubled its assets under management (AUM) to over Rs 1300 crore. It has a customer base of over three lakh, spread across 68 districts in four states. The company has closed the Series B funding just over a year after its earlier Series A funding in which it had raised Rs 75 crore.
Even during the time of stress faced by the industry due to the pandemic, Light says it had grown its AUM by over 90%, compared to the industry growth of 25% across banks, small finance banks and NBFCs.
